August Gold Delivery Update

9
Fri, Aug 28, 2015 - 9:36am

Another item of great interest that we follow each month is the ongoing sham/charade/fraud of The Comex metal deliveries. After the extraordinary and unusual happenings in July silver, we've been monitoring August gold all month for similar oddities. See these links for example:

  • https://www.tfmetalsreport.com/blog/7031/wrapping-july-comex-silver-deli...
  • https://www.tfmetalsreport.com/blog/7043/comex-august-gold-deliveries-heat
  • https://www.tfmetalsreport.com/blog/7046/jpmorgan-gold-vault-hubbub
  • Keeping in mind that "Last Notice Day" is today, August 28, check out the data below and compare the ongoing open interest changes with the daily deliveries:

    DATE OPEN INTEREST DELIVERIES TOTAL DELIVERIES

    Jul 30 9,215 3 3

    Jul 31 (FND) 8,295 256 259

    Aug 3 6,894 84 343

    Aug 4 6,593 2,828 3,171

    Aug 5 3,875 8 3,179

    Aug 6 3,838 4 3,183

    Aug 7 3,643 18 3,201

    Aug 10 3,249 172 3,373

    Aug 11 2,910 450 3,823

    Aug 12 2,510 1 3,824

    Aug 13 2,502 0 3,824

    Aug 14 2,123 0 3,824

    Aug 17 1,763 1 3,825

    Aug 18 1,648 1 3,826

    Aug 19 1,525 0 3,826

    Aug 20 1,495 0 3,826

    Aug 21 1,476 0 3,826

    Aug 24 1,451 59 3,885

    Aug 25 1,345 0 3,885

    Aug 26 1,291 552 4,437

    Aug 27 (preliminary) 676 618 5,055

    So, of the 9,215 contracts still open when the Aug15 went off the board on July 30...and of the 8,295 contracts still open at the close of First Notice Day on July 31...The Comex has only delivered 5,055. While this is still a greater percentage than usual, what the heck happened to the other 3,000+ contracts that have just evaporated over the course of the month? Did these folks just simply decide that they didn't want the metal for which they had been standing? Did they then just quietly close out their August position by selling it at the market? Were they, perhaps, offered some "financial incentive" to take cash in lieu of delivery? Who knows? And given the deliberately opaque nature of the Comex delivery process, we'll never know.

    And here's something else we've been following. On August 4, when a massive 2,828 deliveries were made, recall that 2,750 of those came out of the JPM House account. Since Comex rules limit front and delivery month positions to 3,000 contracts, we wondered how JPM would get around having to deliver more gold if necessary. Well, we have our answer. After delivering 500 contracts Wednesday and another 616 yesterday, the JPM Customer account has now delivered 1,756 contracts this month! So, how do you get around the position limits? Have your offshore, non-proprietary accounts make the deliveries for you.

    And here's another item of note. Recall that on that August 4 huge delivery day, the primary stoppers were the House accounts of Goldman and HSBC. HSBC specifically stopped 1,249 of them. For the month, that total for HSBC has reached 1,548. However so far this month, there has been virtually ZERO movements of gold in or out of the HSBC Comex vault. (The House account of Goldman is up to 2,451 contracts stopped but since Goldman doesn't maintain a Comex vault, we have no way of monitoring the firm's movements.)

    The report below is the CME Gold Stocks report from August 4. Note that the total HSBC vault is 4,815,090 troy ounces. Also note that the total JPM Vault is 1,197,462 troy ounces:

    Now look at the report from Wednesday (in an updated format). Note that HSBC is unchanged at 4,814,672 with virtually no daily changes in the three weeks since. Also note that JPM's vault, at 972,828, is down 225,000 ounces from the beginning of the month but only about half of what they've allegedly "delivered". So where is HSBC's new gold? For that matter, from where did Goldman get their's? For us, all this does is prove yet again that the entire Comex delivery scheme is nothing but a paper shuffle of warehouse receipts. Very little real gold is ever moved. Each "delivery" month is just a shell game where The Banks simply pass ownership claims back and forth.

    Anyway, what's the point of all this. Well, first the higher than usual "delivery" demand could be another anecdotal data point for global metal tightness. To that end, while there were only 89 August (non-delivery month) silver contracts left open on First Notice Day, the Comex has now delivered 380 as of yesterday. Isn't that interesting? However, the larger point is this:

    The Comex delivery process is a sham and fraud using deliberate deception, hypothecation and accounting tricks. Why does this matter? Because the only thing that gives the Comex paper price any significance is the ongoing charade that physical deliveries are made at those prices. By demonstrating to you the utter sham and fraud of the delivery process, I'm hoping to further convince you of the corruption and fraud of the entire paper derivative pricing system.

    This system will, of course, eventually implode under the weight of its accumulated lies. The resulting collapse might possibly be enough to completely denigrate and destroy the exchanges and banks responsible for the ongoing crime. What an interesting time to be alive, indeed.

    TF

    About the Author

    Founder
    turd [at] tfmetalsreport [dot] com ()

      9 Comments

    CPE · Aug 28, 2015 - 9:41am

    Thx

    Turd

    ArtL · Aug 28, 2015 - 9:47am

    2

    2

    Marchas45 · Aug 28, 2015 - 10:19am

    3RD ?

    Well Well

    climbthathill · Aug 28, 2015 - 11:54am

    4th?

    My first time in single digits... And I read the article before posting...

    Fred Hayek · Aug 28, 2015 - 3:33pm

    So . . 3,240 parties put up the money then . . went away

    Does anything like this ever happen in other markets such as oil?

    SilveryBlue · Aug 28, 2015 - 6:40pm

    Perhaps

    Those offered financial incentive not to settle Gold immediately barge to the front of the silver delivery line? A little windfall could be repeated each month.

    Mr. Fix · Aug 28, 2015 - 9:21pm

    Still seventh after 12 hours?

    Tell me it ain't so!

    Maybe they should just close the COMEX due to lack of interest.

    59LesPaul · Aug 29, 2015 - 4:28am

    Re:Deliveries

    "The Comex has only delivered 5,055. While this is still a greater percentage than usual, what the heck happened to the other 3,000+ contracts that have just evaporated over the course of the month?"

    Maybe they didn't want to take the risk of waiting 3-6 months for the gold to actually turn up, if at all.

    Fred Hayek · Aug 30, 2015 - 2:07pm

    @59LesPaul - But they already put up the money!

    Those buyers had already put up the money for their contracts. After you've done that, why go away especially with the trends of geopolitics and economics. It makes no sense.

    Notice: If you do not see your new comment immediately, do not be alarmed. We are currently refreshing new comments approximately every 2 minutes to better manage performance while working on other issues. Thank you for your patience.

    Become a gold member and subscribe to Turd's Vault

    Contribute

    Donate  Shop

    Get Your Subscriber Benefits

    Exclusive discount for silver purchases, and a private iTunes feed for TF Metals Report podcasts!

    Key Economic Events week of 12/10

    12/11 8:30 ET Producer Price Index
    12/12 8:30 ET Consumer Price Index
    12/13 8:30 ET Import Price Index
    12/14 8:30 ET Retail Sales
    12/14 9:15 ET Industrial Prod. and Cap. Utilization
    12/14 10:00 ET Business Inventories

    Key Economic Events week of 11/26

    11/27 9:00 ET Case-Schiller home prices
    11/27 10:00 ET Consumer Confidence
    11/28 8:30 ET Q3 GDP 2nd guess
    11/28 10:00 ET New home sales
    11/29 8:30 ET Personal Income and Spending
    11/29 10:00 ET Pending home sales
    11/29 2:00 ET November FOMC minutes

    Key Economic Events week of 11/19

    11/20 8:30 ET Housing Starts
    11/21 8:30 ET Durable Goods
    11/21 10:00 ET UMich Sentiment
    11/21 10:00 ET LEIII
    11/21 10:00 ET Existing Home Sales

    Recent Comments

    by atarangi, 7 min 20 sec ago
    by atarangi, 42 min 37 sec ago
    by abundance, Dec 10, 2018 - 11:53pm
    by atarangi, Dec 10, 2018 - 11:48pm
    by lakedweller2, Dec 10, 2018 - 9:39pm
    by Turd Ferguson, Dec 10, 2018 - 9:24pm
    randomness